Well cylinder ridge is caused because that is where the rings stop traveling up the cylinder. Measure the ring gap at the top of ring travel and at the bottom of ring travel. Rings do not travel to bottom of bore, only the piston skirt does. I almost always use .010" oversize rings hand fitting to .008" ring gap at bottom of ring travel. I do that, I do not recommend nor encourage anyone else to do it. Valve guides should be no problem for a Service Tech, easy and cheap to install, shop should have reamer, driver and finish ream.
Never saw a camshaft look like that and I have rebuilt a bunch of these engines. You may want to look at the cams in other engines you say are in shop junk. Check valve seats for tightness, especially the exhaust valve seats.
If there is no coil on engine now to look at, when you install coil, make sure it is right side up. Some are marked, others not. Install with wires heading towards back of engine then they double back under coil and out carb side of engine - common mistake. Also, make sure fuel pump hoses are connected properly, another common mistake. I see you have been pointed to a Service Manual which will be valuable. This engine should be economical to rebuild for your purpose, not figures advanced above.
Walt Conner
Never saw a camshaft look like that and I have rebuilt a bunch of these engines. You may want to look at the cams in other engines you say are in shop junk. Check valve seats for tightness, especially the exhaust valve seats.
If there is no coil on engine now to look at, when you install coil, make sure it is right side up. Some are marked, others not. Install with wires heading towards back of engine then they double back under coil and out carb side of engine - common mistake. Also, make sure fuel pump hoses are connected properly, another common mistake. I see you have been pointed to a Service Manual which will be valuable. This engine should be economical to rebuild for your purpose, not figures advanced above.
Walt Conner